RES-2016-177PARTICIPATION AGREEMENT
This PARTICIPATION AGREEMENT ("Agreement"), made and entered into as of
, 2016, by and among the CALIFORNIA MUNICIPAL FINANCE AUTHORITY, a
joint powers agency organized and existing under the laws of the State of California (the
"AUTHORITY"), [INSERT ADMINISTRATOR], [INSERT TYPE OF ENTITY],
("ADMINISTRATOR") and the City of Anaheim, a municipal corporation organized and
existing under the laws of the State of California (the "PARTICIPATING MEMBER");
WITNESSETH:
(a) The AUTHORITY is a joint powers agency organized and existing pursuant to
the Joint Powers Act, comprising Articles 1, 2, 3 and 4 of Chapter 5 of Division 7
of Title I (commencing with Section 6500) of the Government Code of the State
of California; and
(b) The AUTHORITY has adopted the Open CMFA PACE Program (the
"Program"), for the financing of certain renewable energy, energy and water
efficiency improvements, and seismic strengthening improvements, electric
vehicle charging infrastructure and such other improvements, infrastructure or
other work as may be authorized by law from time to time (the "Improvements")
authorized by Chapter 29 of Division 7 of the Streets & Highways Code
("Chapter 29") within the PARTICIPATING MEMBER'S jurisdiction; and
(c) The PARTICIPATING MEMBER has authorized the AUTHORITY to form an
assessment district (the "District") for Program financing of Improvements on
certain properties owned by property owners who voluntarily agree to participate
in the Program ("Program Participanf'); and
(d) The AUTHORITY intends to issue bonds, notes or other forms of indebtedness
(the "Bonds") to finance Improvements within the District; and
(e) The PARTICIPATING MEMBER desires to authorize the AUTHORITY to (i)
record the assessment against the participating property owner's parcels, (ii)
administer the District in accordance with Chapter 29 and the Improvement Act of
1915 (commencing with Section 8500 et seq.) and (iii) prepare program
guidelines for the operations of the Program; and
The PARTICIPATING MEMBER will permit the ADMINISTRATOR to
perform certain management, administrative, operational and implementation
functions for the AUTHORITY with respect to the Program.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL
PROMISES, COVENANTS AND CONDITIONS HEREIN CONTAINED, THE PARTIES
HERETO AGREE AS FOLLOWS:
Section 1. Recitals. The Recitals contained herein are true and correct and are hereby
incorporated herein by reference.
Section 2. Appointment of the AUTHORITY. PARTICIPATING MEMBER is not and
will not be deemed to be an agent of the AUTHORITY or the ADMINISTRATOR as a result of
this Agreement. PARTICIPATING MEMBER consents to the AUTHORITY's assumption of
rights, responsibilities, obligations and liabilities related to the Agreement within its jurisdiction
upon satisfaction of the conditions imposed pursuant to this Agreement and the resolution
authorizing this Agreement, to take each and every step required for or suitable for financing the
Improvements, including the levying, collecting and enforcement of the contractual assessments.
PARTICIPATING MEMBER consents to the ADMINISTRATOR acting as the third
party administrator for the Program in the jurisdiction of the PARTICIPATING MEMBER. In
addition, AUTHORITY may add any entity to act as an additional or substitute third -party
program administrators (each such substitute or additional administrator, an "Additional
Administrator") in the jurisdiction of the PARTICIPATING MEMBER; provided that, the City
Manager of the PARTICIPATING MEMBER provides his prior written consent to any such
addition or substitution and that entity executes a participation agreement with
PARTICIPATING MEMBER and the AUTHORITY.
Section 3. Indemnification. The AUTHORITY and the ADMINISTRATOR jointly and
severally agree to defend, indemnify, and hold harmless the PARTICIPATING MEMBER, its
officers, agents, employees and attorneys from and against any and all liabilities, claims, or
demands arising or alleged to arise as a result of the AUTHORITY's or the
ADMINISTRATOR's performance or failure to perform under this Agreement or the Program,
except that arising from the sole negligence or willful misconduct of PARTICIPATING
MEMBER.
AUTHORITY further agrees to defend, indemnify, and hold harmless the
PARTICIPATING MEMBER, its officers, agents, employees and attorneys from and against any
and all liabilities, claims, or demands arising or alleged to arise as a result of the AUTHORITY's
or any Additional Administrator's performance or failure to perform under its program
administration agreement or with respect to its operation or administration of the Program,
irrespective of whether such Additional Administrator has entered into a participation agreement
with the City, except that arising from the sole negligence or willful misconduct of
PARTICIPATING MEMBER.
This Section shall survive termination of this Agreement.
Section 4. PARTICIPATING MEMBER has no liability. Except as expressly set forth in
this the Agreement or Resolution [INSERT NUMBER], PARTICIPATING MEMBER shall not
have any liabilities or obligations or incur any costs or expenses for the Program, including, but
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not limited to, the repayment of any bonds issued for the Program. PARTICIPATING MEMBER
will not have any responsibilities or obligations with respect to the Program, including, but not
limited to, the conduct of any assessment proceedings, the levy of assessments, any required
remedial action in the case of delinquencies, the issuance, sale or administration of the bonds or
other indebtedness issued in connection with the Program.
Section 5. Information to be Provided. Within thirty (30) days of each request from
PARTICIPATING MEMBER, the AUTHORITY and ADMINISTRATOR agree to provide
PARTICIPATING MEMBER with a list of property owners within the City of Anaheim
participating in the Prograin as well as their address, detailed description of Improvement(s)
installed, and date(s) of Improvement(s) completion.
Section 6. Confidentiality.
(a) "Confidential Information" means, with respect to a Party hereto, all information
or material which either (1) is marked or identified as "Confidential," "Restricted," or
"Proprietary Information" or other similar marking or identification, or (2) the other Party knew,
as recipient, or under the circumstances, should have known, was considered confidential or
proprietary by the Disclosing Party (as defined below). Confidential Information shall consist
of all information, whether in written, oral, electronic, or other form, famished in connection
with this Agreement by one Party or its Representatives ("Representative" is defined as any
elected and appointed officials, affiliate, director, officer, employee, agent, advisor or consultant
of a Party or any of its subsidiaries or affiliates) to one or more of the other Parties or to their
Representatives, and specifically includes but is not limited to (1) PARTICIPATING
MEMBER's individually identifiable customer information, (2) PARTICIPATING MEMBER's
customer data and financial data, (3) the AUTHORITY's property owner information disclosing
to PATICIPATING MEMBER pursuant to Section 5, and (4) the ADMINISTRATOR's
customer data and financial data..
(b) The AUTHORITY, the ADMINISTRATOR and PARTICIPATING MEMBER
shall each hold each other's Confidential Information in confidence. No Party shall make the
others' Confidential Information available in any form to any third party or use any other's
Confidential Information for any purpose other than as specified in this Agreement. The Party
providing Confidential Information ("Disclosing Party") to any other Party ("Receiving Party")
shall remain the sole owner of such information. Except as provided elsewhere within this
Agreement, nothing contained in this Agreement shall be construed as granting or conferring any
tight or license in any Confidential Information or in any patents, copyrights, software or other
technology, either expressly or by implication to any other Party, or to its Representatives or to
others. The term Confidential Information shall not include any of the following: (1) information
already in possession of, or already known to, the Receiving Party as of the Effective Date
without an obligation of confidentiality; (2) information in the public domain at the time of the
disclosure, or which, after such disclosure, enters into the public domain through no breach of
this Agreement by the Receiving Party or its Representative(s); (3) information lawfully
famished or disclosed to the Receiving Party by a non-party to this Agreement without any
obligation of confidentiality and through no breach of this Agreement by the Receiving Party or
its Representative(s); (4) information independently developed by the Receiving Party without
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use of any Confidential Information of the Disclosing Party; or (5) information authorized in
writing by the Disclosing Party to be released from the confidentiality obligations herein.
(c) By virtue of this Agreement, each Party hereto may disclose to any other Party
information that is Confidential Information. This Agreement does not diminish, revoke or
supersede any existing confidentiality, non -disclosure or similar agreement between or among
any Parties that does not pertain to the subject matter of this Agreement. However, any
Confidential Information, whether or not previously disclosed, that pertains to the subject matter
of this Agreement shall be governed by the terms of this Section 6 which shall supersede any
such previous agreement with respect to such Confidential Information and any Confidential
Information relating to the subject matter of this Agreement that was exchanged under such
previous agreement shall be treated as though it was exchanged under this Agreement as of the
date of such exchange.
(d) Each Receiving Party will treat all Confidential Information of the Disclosing
Party, no matter written, electronic, or oral, as confidential and proprietary, and such Receiving
Party shall only use such information in furtherance of this Agreement. As such, such Receiving
Party shall hold in confidence the Confidential Information of the Disclosing Party, and ensure
that such Confidential Information is not disclosed to any other person or entity, except as
expressly permitted by this Agreement or as authorized by the Disclosing Party. No Receiving
Party shall disclose Confidential Information of a Disclosing Party received under this
Agreement to any person other than its Representatives who require knowledge of such
Confidential Information in furtherance of this Agreement. Each Receiving Party shall inform its
Representatives of the confidential nature of the Confidential Information of any Disclosing
Party and advise such Representatives of the limitations on the use and disclosure and
prohibition on making copies or summaries of such Confidential Information. Each Receiving
Party shall be responsible for any breach of this Agreement by its Representatives. No Party shall
use the Confidential Information of any other Party for any commercial purpose.
(e) If a Receiving Party becomes legally compelled (by the California Public Records
Act or other applicable laws, or by oral questions, interrogatories, request for information or
documents, subpoena, civil investigative demand, or similar process) to disclose any
Confidential Information of a Disclosing Party, the Receiving Party will provide the Disclosing
Party with written notice of such an occurrence (if so permitted) as soon as possible. Thereafter,
at its sole costs and expense, the Disclosing Party may seek a protective order or other
appropriate remedy, or waive compliance with the provisions of this Agreement. So long as it is
consistent with applicable law, the Receiving Party will not oppose action by, and the Receiving
Party will cooperate with, the Disclosing Party, at the Disclosing Party's sole cost and expense,
to obtain an appropriate protective order or other reliable assurance that confidential treatment
will be accorded the Confidential Information. If the Disclosing Party fails to obtain such
protective order or other remedy, or if the Disclosing Party waives compliance with the
requirements of the preceding sentence, the Receiving Party will disclose only that Confidential
Information that it is legally required to disclose, and will exercise commercially reasonable
efforts, at Disclosing Party's expense, to obtain reliable assurance that confidential treatment will
be accorded the Confidential Information so disclosed.
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(f) In the event a Receiving Party discloses, disseminates or releases any
Confidential Information, except as expressly permitted by this Agreement, such disclosure,
dissemination or release will be deemed a material breach of this Agreement and the Disclosing
Party may demand prompt return of all Confidential Information previously provided to the
Receiving Party. As soon as the Receiving Party becomes aware that it has made an
unauthorized disclosure of Confidential Information, the Receiving Party shall take any and all
necessary actions to recover the improperly disclosed Confidential Information and immediately
notify the Disclosing Party regarding the nature of the unauthorized disclosure and the corrective
measures being taken. Each Party agrees that any breach of their confidentiality obligations
could cause irreparable harm to the Disclosing Party, the amount of which would be extremely
difficult to estimate. Accordingly, it is understood and agreed that monetary damages would not
be a sufficient remedy for any material breach of this Agreement and that specific performance
and injunctive relief in addition to monetary damages shall be appropriate remedies for any
breach or any threat of such breach. The provisions of this Paragraph are in addition to any other
legal rights or remedies a Disclosing Party may have.
(g) Notwithstanding any other provision of this Agreement, the provisions of
this Section 6 shall not apply to the disclosure of information that must be shared in order to
record, levy or collect contractual assessments under the Program or to sell or securitize Bonds.
(h) The Authority shall ensure all Additional Administrators are bound by the
provisions of this Confidentiality Section.
0) Notwithstanding the termination of this Agreement, this Confidentiality
Section shall survive the expiration or earlier termination of this Agreement.
Section 7. Integration. This Agreement is subject to the terms of Resolution [INSERT].
This Agreement contains the entire agreement of PARTICIPATING MEMBER, the
ADMINISTRATOR, and the AUTHORITY with respect to the matters covered hereby, and no
agreement, statement or promise made by PARTICIPATING MEMBER, the
ADMINISTRATOR, and the AUTHORITY which is not contained herein, shall be valid or
binding. No prior agreement, understanding or representation pertaining to any such matter shall
be effective for any purpose.
Section 8. Termination. This Agreement may be terminated by either the
AUTHORITY or PARTICIPATING MEMBER with thirty (30) days written notice. In the event
of such termination, the AUTHORITY, the ADMINISTRATOR, or any Additional
Administrator shall no longer have the rights and authorizations granted in this Agreement and
Resolution [INSERT], including but not limited to, conducting of additional contractual
assessment proceedings and levying new contractual assessments, except to the extent the
AUTHORITY may have such rights and authorizations under a separate participation agreement.
Section 9. No Endorsements. The AUTHORITY and ADMINISTRATOR shall not
represent to any person or entity that PARTICIPATING MEMBER endorses or is a Program
affiliate of the AUTHORITY or ADMINISTRATOR. In connection therewith and without
limiting the foregoing prohibition, the AUTHORITY and ADMINISTRATOR shall not use any
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logo or other representation of the PARTICIPATING MEMBER. The Authority shall ensure all
Additional Administrators are bound by the provisions of this Section.
Section 10. Effective Date. This Agreement shall be effective on the date on which this
Agreement is executed by the PARTICIPATING MEMBER ("Effective Date").
IN WITNESS WHEREOF, the parties hereto have executed this Participation Agreement
by their officers duly authorized as of the day and year first written above.
CALIFORNIA MUNICIPAL FINANCE
AUTHORITY
By:
[INSERT]
[INSERT ADMINISTRATOR]
By:
CITY OF ANAHEIM, a municipal corporation
By:
City Manager
ATTEST
By:
Linda N. Andal, City Clerk
APPROVED AS TO FORM:
ANAHEIM CITY ATTORNEY
ME
Daniel A. Ballin, Deputy City Attorney
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